Hi Traders! Arvinth here from the Home Trader Club team. The weekly summary and review of February 17th 2023 is here. It is now time to recap and summarize the trade setups that we had during this week. Below you will find a short explanation of all the trade setups we had this week and how it has currently developed now.

Trading Ideas (Blog Posts)

AUDCAD – My idea here was “On the H4 chart, based on the Heikin Ashi candles we can see that currently, we have strong bearish bodies in downward-moving market conditions so it basically reflects a bearish environment. In addition to this, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, and lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then a further continuation lower. Currently, it looks like a correction is happening. Also, we had two strong support zones that have formed, the price moved lower broke below these zones and is holding below them, we may consider this as yet another evidence of bearish pressure. Currently, these strong support zones are acting as strong resistance zones for us. Until these two strong resistance zones (marked in red) shown in the image below hold my short-term view remains bearish here and I expect the price to move lower further after pullbacks”.

Current Scenario – Based on the above-mentioned analysis my short-term view was bearish here and I was expecting the price to move lower further until the two strong resistance zones hold. After the bearish trend pattern, we had a pullback with the price nearing the first strong resistance zone. The price then moved lower and has delivered 130+ pips move so far!

Litecoin – My idea here was “On the H1 chart, we had a bullish divergence that formed between the first low formed on 9th February 2023 and the second low formed on 13th February 2023 based on the MACD indicator which we may consider as evidence of bullish pressure. In addition to this, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. we may consider this as other evidence of bullish pressure. Also, the price has broken above the most recent downtrend line and is currently holding above it, we may consider this as another evidence of bullish pressure. Also, the ADX indicator gave a bullish signal here as well, at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads a value over 25, we may consider this as yet another evidence of bullish pressure. So based on all this, my short-term view remains bullish here and I expect the price to move higher further until the strong support zone (marked in green) shown in the image below holds”.

Current Scenario – In Litecoin, my short-term view was bullish and I was expecting the price to move higher further until the strong support zone holds. The price action followed my analysis exactly as I expected it to here and it moved higher further delivering a fantastic move to the upside as you can see in the image below!

AUDNZD – My idea here was “On the H4 chart, the price which is moving higher has created a false break with a bearish divergence that has formed between the first high that has formed at 1.10304 and the second high that has formed at 1.10319 based on the MACD indicator which we may consider as evidence of bearish pressure. In addition to this, based on the Parabolic Sar, we could see that the dots are above the price which we may consider as yet another evidence of bearish pressure. If the price breaks below the last low at 1.09283 with the momentum I may then expect short-term bearish moves to happen here. Alternatively, if the price moves higher breaks and holds above the key resistance zone (marked in red) shown in the image below, then this bearish view will be invalidated”.

Current Scenario – In AUDNZD the validation for the short-term bearish view which is a valid breakout below the last low at 1.09283 didn’t happen yet. My plan still remains the same here.

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